I went to a small junior college for two years, then transferred to a "real" university and have been there for four semesters now. (I have one more to go.) I don't live on campus because my school is a commuter school and doesn't have dorms.
In short, I preferred it much better at my small college. My major had just enough people to fill a classroom, so I was with the same group of people for the two years and got to know them well. I would even say I was friends with a few of them: we hung out in between classes, went to lunch, talked online at night.
At my bigger school, you can literally disappear against the wall if you choose to. But it's been a different group of people in every class that I've had and it's been extremely different to make even an acquaintance, nevermind an actual friend. It's very lonesome.
It's a double-edged sword I guess.